'Participants factor' actually is one of the reasons I said Bursa Malaysia can move either direction in a major way. Lack of oversea funds, other local fund and retail participants made certain local big funds 'solely' lead the market now.
In previous blogpost on KLSE outlook, I said 1,157 pt is the resistance.
KLCI managed to break out from that resistance.
Yes, it is a breakout although not a convincing one.
Convincing or not, it's still a breakout and now the resistance became the support.
That new minor support level (1,157 pt) is an ideal level to be taken as the support level where any breach can be taken as an early bearish signal.
Yes, it is a breakout although not a convincing one.
Convincing or not, it's still a breakout and now the resistance became the support.
That new minor support level (1,157 pt) is an ideal level to be taken as the support level where any breach can be taken as an early bearish signal.
Now, index still on the way up, what is the target now? The next resistance? Or the next pivot or reversal point?
At this moment I don't have any realistic target zone, as a wave 5 in the making (I think so), anything can happen in a 'major' way. As the last bullish phase of Elliot wave cycle; it can reverse anytime for a major correction or it can move all the way up like there's no tomorrow (bullish extension waves also can developed). Either way, the 5-wave sequence (intermediate) minimum requirements has fulfilled. Any resistance/targets should be just soft targets. Also, I don't think the current narrow trend will keep trending flat or sideways manner for long.
At this moment I don't have any realistic target zone, as a wave 5 in the making (I think so), anything can happen in a 'major' way. As the last bullish phase of Elliot wave cycle; it can reverse anytime for a major correction or it can move all the way up like there's no tomorrow (bullish extension waves also can developed). Either way, the 5-wave sequence (intermediate) minimum requirements has fulfilled. Any resistance/targets should be just soft targets. Also, I don't think the current narrow trend will keep trending flat or sideways manner for long.
Compared to wave 1 or 3, current wave (5) is the best time to wait and see (considering the risk and reward). If you must trade, short-term trading (say, 4 days market cycle) is better idea at this period rather than lingering longer.
Previous week, as predicted by most analysts, lower liners (we cannot say second liners anymore) will take the stage. The prophecy is fulfilled. It also fulfilled the characteristic of climatic wave 5.
Last week, lower liners took the stage. This week so far, they seem wavering. I think it is because the lack of retails participation. If they came, they came in half-hearted, I will say more like they were nibbling. I guess, our big local fund managers are the only market participants that really trade full hearted.
'Participants factor' actually is one of the reasons I said Bursa Malaysia can move either direction in a major way. Lack of oversea funds, other local fund and retail participants made certain local big funds 'solely' lead the market now. If EPF still has the budget and decide want to come, she will come. And the index will continue going up. Lack of mixed participants is the characteristic that made me not so keen of KLSE now.
However, I have a bullish longer term view. My Elliot wave counting been revised to make all the sequence of intermediate waves (short-term), primary waves and cycle waves harmonizing.
Let just say, I think (crystal ball gazing) KLCI can go higher than 1,524 pt and breaking new record again and again next year. There is no change in intermediate waves counting though. The corrective a,b,c wave target is still around 1,000 pt . Too early to talk about that now, wave 5 haven't even ended yet. Need to wait for that first, should be 'sooner' by now. Patience. Like waiting for traffic-light to turn green, the longer you wait, the sooner it will happen.
KLCI daily chart: (click for full viewing)
Let just say, I think (crystal ball gazing) KLCI can go higher than 1,524 pt and breaking new record again and again next year. There is no change in intermediate waves counting though. The corrective a,b,c wave target is still around 1,000 pt . Too early to talk about that now, wave 5 haven't even ended yet. Need to wait for that first, should be 'sooner' by now. Patience. Like waiting for traffic-light to turn green, the longer you wait, the sooner it will happen.
KLCI daily chart: (click for full viewing)
